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United Financial Bancorp, Inc. Surpasses $1 Billion in Total Assets; Announces Increase of 20% in Quarterly Cash Dividend to $0.06 Per Share.

Article Excerpt
WEST SPRINGFIELD, Mass., Jan. 30 /PRNewswire-FirstCall/ -- United Financial Bancorp, Inc. (the "Company") , the holding company for United Bank (the "Bank"), reported net income of $766,000, or $0.05 per diluted share, for the fourth quarter of 2006 compared to net income of $1.6 million, or $0.10 per diluted share, for the same period in 2005. The 2006 results were mainly impacted by net interest margin contraction, an increase in non-interest expenses and growth in average earning assets. For the year ended December 31, 2006, the Company earned $4.9 million, or $0.30 per diluted share, compared to $4.4 million for the 2005 period. Earnings-per-share data were not applicable to the year ended December 31, 2005 since the Company's initial public offering was consummated in July 2005. The Company also announced a quarterly cash dividend of $0.06 per share payable on February 26, 2007 to shareholders of record as of February 12, 2007.

The Company's total assets increased $102.4 million, or 11.3%, to $1.0 billion at December 31, 2006 compared to $906.5 million at December 31, 2005, reflecting strong loan growth. The balance sheet expansion was funded by cash flows from the investment securities portfolio, an increase in total deposits and the use of additional advances from the Federal Home Loan Bank.

"We are pleased with the results of our efforts to grow our franchise while maintaining excellent asset quality and a strong capital position," commented Richard B. Collins, President and Chief Executive Officer. "During 2006, we achieved an important milestone as total assets reached $1 billion, we opened two new branches in Northampton and Westfield Massachusetts and we acquired a financial services business." Mr. Collins also remarked that...